Question

National Storage employs 88 workers with a gross monthly payroll of $135,000. Fringe benefits are 8.6% of payroll for a profit sharing plan and $9.23 per employee for life insurance.
What percent of payroll is the total cost of fringe benefits? Round your answer to the nearest tenth of a percent.

Answer 1

Answer: total fringe benefit = 10%

Explanation:

To calculate the total fringe benefit, You take the payroll of 135000 multiple by 8.6% to get 11,610 then for life insurance take the number of employees of 88 multiple by 9.23 per employee to get 812.24. For total fringe benefit we take both fringe benefit and life insurance to get the total of 12,422.24. Life insurance to employees is a fringe benefit. to get the percent we take total fringe benefit of 12,422.24 divide by 135000 to get 9.20%